Financial And Managerial Accounting Chapter 1 Terms

Auditors – Individuals hired to review financial reports and information systems.

Internal auditors of a company are employed to assess and evaluate its system of internal controls, including the resulting reports.

External auditors are in dependent of a company and are hired to assess and evaluate the "fairness" of financial statements (or to perform other contracted financial services).

Internal control – Use for accuracy and reliability of accounting info
Accounts payable – The amount of money owed to the creditors of a business.
A formal report of a business's financial condition on a certain date; reports the assets, liabilities, and owner's equity of the business. – Balance Sheet
interest receivable – current asset, BS, debit
Current asset – one which will be converted into cash or consume in one year or less
Credit – An amount recorded on the right side of a T account.
Official term to describe a bounced cheque – NSF cheque
Accrued Income – Income earned during an accounting period but not yet received
__________  validity is demonstrated when scores on a scale correlate highly with scores on a scale measuring a similar attribute or characteristic.
Double entry accounting (double entry bookkeeping) – the process of recording equal debits and credits for a single business transaction.
Liquidity – Working capital is a measure of
What is a financial transaction? – any event that affects the financial position of the business that can be reliabily recorded, involves debits or credits
__________  vаlidity is demоnstrаted when scоres оn а scale correlate highly with scores on a scale measuring a similar attribute or characteristic.
Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
A. $980
B. $780
C. $800
D. $784 – D

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply